Macroeconomic effects of a declining wage share: A meta‐analysis of the functional income distribution and aggregate demand
Quirin Dammerer,
Ludwig List,
Miriam Rehm
et al.
Abstract:This paper reviews the theoretical and empirical literature on the relationship between the functional distribution of income and aggregate demand, which investigates whether declining wage shares increase (“profit‐led”) or decrease (“wage‐led”) demand. It conducts a meta‐regression analysis of 33 studies with 578 estimates for total and domestic demand, covering up to 163 years and 59 countries and regions. Our results suggest that, on average and across all countries, total demand is predominantly profit‐led… Show more
Set email alert for when this publication receives citations?
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.